Area III: Performing Procedures — CPA Practice Question 50

How to approach this question

Statistical vs Non-Statistical: Statistical = Math (Quantified Risk). Non-Statistical = Judgment (Qualitative Risk). Both are okay.

Full Answer

C.The conclusion relies on the auditor's judgment to evaluate sampling risk, as it cannot be quantified mathematically.✓ Correct

A key difference between statistical and non-statistical sampling is that statistical sampling allows the auditor to measure/quantify sampling risk. In non-statistical sampling, the auditor must use professional judgment to evaluate whether the evidence is sufficient.

Common mistakes

Thinking Non-Statistical sampling is invalid or 'worse'. It's just different.

An auditor is using non-statistical sampling to test the operating effectiveness of a control. The auditor selects a sample of 50 items and finds 0 deviations. The auditor concludes that the control is operating effectively. Which of the following statements is TRUE regarding this conclusion?

How to approach this question

Full Answer

Common mistakes

Practice the full CPA AUD Practice Exam 2

More questions from this exam